Explaining the Chinese Car Industry and Chinese Cars
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Chinese media reports are quoting the VW China Executive Vice President Zhang Sui Xin as saying that the SAIC made Santana and the FAW made Jetta as we know them will cease production by 2010, either being replaced by newer models or to be massively upgraded.
Mr. Zhang also mentioned in the interview that VW have invested in facilities to produce fuels from grains, as VW believe that the high price of oil are severely affecting the automobile market.
Seeing as SAIC is a major stakeholder in Ssangyong (51%) why would anyone get upset about ‘leaking’ hybrid information to them?
CNN reports:
South Korea’s Ssangyong Motor Co. said Sunday it has never leaked hybrid car-related technologies to China’s SAIC Motor Corp.
“As core technologies of hybrid cars are being developed not by Ssangyong but by its partner companies, Ssangyong is not in the position to leak any hybrid technologies to SAIC (Motor),” Ssangyong spokesman Lee Kyo-Hyun told Dow Jones.
He was speaking in response to reports that prosecutors on Friday had raided the head office of its Pyeongtaek plant in an investigation into whether Ssangyong has illegally leaked hybrid technologies to SAIC Motor since 2005.
The spokesman confirmed prosecutors raided the Pyeongtaek office and had taken some documents.
In 2005, SAIC - a longtime partner of General Motors Corp. (GM) and Volkswagen AG (VLKAY) in Shanghai - paid about $500 million for a 51.33% stake in the sport utility vehicle-focused carmaker.
“As SAIC Motor already has technologies to mass produce hybrid cars, it is even considering transferring the technologies to Ssangyong,” said Lee.
This old smoker was spotted last Saturday, but being with wife, there was no time to check it out. From afar, it looked like a classic Hong Qi - Red Flag, but further inspection on the Sunday (sans wife) showed that the car was actually an Old Shanghai - the precursor to SAIC.
This old Shanghai was in quite a state, but the owner - mechanic- says he is in the process of giving the old girl a makeover. But his apprentice gladly offered it to us for 10,000rmb ($1,400USD) an offer we politely reclined.
Urm, yeah:
Jun. 5, 2008 (China Knowledge) - SAIC Motor Corp Ltd, China’s biggest auto maker, displayed its first self-made luxury sports car Fengyi at the Auto Components Shanghai 2008, local newspaper reported.
The concept car, which was designed with the illumination of a phoenix about to take flight, attracted a lot of attention at the exhibition. The car’s two headlights are like the eyes of a phoenix. Yan Lixing, one of its designers said they also adopted tai-chi elements when designing.
SAIC began to design the luxury sports car in October, with a total investment of more than RMB 6 million (US$857,142), sources said. The company has demonstrated its own R&D and design power on luxury sports car.
The latest incarnation of the Ssangyong Chairman is to come to China later this year, it brings with it plenty of heritage, a nice interior and a big price tag: 1 million RMB.
The Chairman is expected to go up against the S-Class and the BMW 7 Series in Chinas growing luxury vehicle segment. The Chinese automotive press were rather shocked by its price, their final verdict was ‘Pro: A Korean car with Mercedes heritage. Cons: Its still a Korean car’
Perhaps certain China Car Times readers are the well off ex-pat sort with plenty of money to throw around on top spec automobiles, so on behalf of our readers we ask ‘What else, could you get for one million RMB in China?‘
One Million RMB is a fair chunk of change for a car, thus the market is entirely yours, but for upmarket luxury cars you may be in for a squeeze!
What would CCT regulars buy?
Huatai have acquired the rights to make the Hyundai Sante Fe in China from their joint venture partner Hyundai. Huatai have been making the Sante Fe, and the Terracan SUV in China for several years now, and have received permission from Hyundai to rebadge the Terracan, and the Sante Fe as their own vehicles. The trouble is, Huatai didnt get an engine with the deal, and dont have any engines of their own. The solution was simple, go shopping for one! Huatai approached SAIC with regards to dropping the 1.8 Turbo assisted KV6 K-series engine from MG-Rover into the SUV, which will now be known as the Huatai Sante Fe.
We’re not entirely sure if Huatai and Hyundai have any plans to make the latest generation of Sante Fe in China, currently the 2nd generation Sante Fe is imported into China.
The 1.8T Huatai Sante Fe is expected to go on sale for around 150,000rmb later this year.
Good news for MG-Rover fans in the United Kingdom:
SAIC Motor Aims to Re-Open U.K. Factory This Year (Update1)
By Irene Shen
April 19 (Bloomberg)China’s biggest automaker, plans to re-open a Longbridge, U.K. car plant in the second half of the year, resuming production at a factory that closed three years ago when MG Rover Group Ltd. collapsed.
The factory will initially make MG-TF roadsters. It may add other models later, Vice Chairman said today in an interview at an event to mark the opening of a Beijing research center. He didn’t say how many cars the plant would make a year.
SAIC Motor, Great Wall Motor Co. and other Chinese carmakers plan to open factories overseas as rising domestic competition crimps profit margins. The Longbridge plant, in central England, employed 6,000 workers when production was halted in April 2005.
MG’s customer loyalty will continue to support sales in Europe,” said a Shanghai-based director at CSM Asia, which advises automakers.
Europe is SAIC Motor’s most important overseas market, although China is the company’s first priority because of the strong demand here.”
The MG Owners’ Club is the largest in the world serving a single marque, according to its Web site. Trial production at the Longbridge plant began in May.
Nanjing Automobile Group Corp., which bought the MG brand for $97 million in 2005, also planned to open a plant in Oklahoma. This project is now being reviewed after SAIC Motor agreed to buy Nanjing Auto’s auto-making assets last year.
It’s hard to say if we’ll continue that plan before the assessment is completed,” said Chen.
Last Updated: April 19, 2008 02:18 EDT
A picture marathon of the latest Shanghai designed, China only VW:
And now for the Spy shots:
The Lavida is VW’s Buick Excelle fighter, its sitting on the Audi A4 platform (codenamed, PQ34, this is also shared with the Audi TT, and various other Audi/VW models) which gives it a fighting stance, and almost 100mm longer than the original VW Bora. The interior is expected to be high end, almost Phateon like, which earned the Lavida the name ‘Mini Phaeton‘ prior to its launch! This is one of the most expected cars at the Beijing Car Show, all eyes will be on VW’s stand next week!
SAIC top brass are probably kicking themselves that they didnt stick a bid in for Landrover and Jaguar, after a record breaking 2007 they can easily afford it!
In 2007 SAIC sold 1.69 million vehicles, which translates into a 25.8% year on year increase on 2006. Profit in RMB was 4.63 billion RMB. Of the 1.69 million vehicles sold, 1.13 million were automobiles.
Sales with its joint venture partners worked out as follows: GM sold 508,380 vehicles, and VW 456,424. SAIC’s minivan and truck making ventures, SAIC-GM-Wuling and SAIC-Iveco Hongyan each sold 520,000 and 24,000 vehicles. Some more good news for SAIC bosses are that sales at its Korean owned manufacturer, Ssangyong, are up 13%. Ssangyong sold 136,000 vehicles in 07, a respectable figure for essentially a niche market player.
SAIC is planning to push the goal posts even further in 2008, with them planning to sell 1.9 million vehicles. Can they meet those targets? Possibly, the Chinese Car Industry shows no signs of slowing just yet.
SAIC are actively seeking partners to build the Roewe 550 for European distribution according to the Chinese automotive portal, auto.sohu.com.
SAIC have reportedly held talks with the German company, Karmann, in hopes of getting them on board to make the Roewe 550 for the European mainland.
SAIC are saying that since buying NAC MG and inheriting the British factory, Longbridge, their strategic sales plans have gathered speed, and have said their next target for expansion is Europe.
Once launched in Europe, the Roewe 550 is expected to sell for 12,000 to 20,000 Euros.
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